The Kings have found a way to get below the luxury tax line, and it comes by stretching the money still owed to DeMar DeRozan.
According to Michael Scotto of Hoops Hype, Sacramento has decided to spread DeRozan’s remaining $10 million salary for the 2026/27 season across three years. That means DeRozan will count for $3.33 million against the Kings’ books in each of the next three seasons.
DeRozan was waived in early July as part of a cost-cutting move. He was set to make $25.74 million in the 2026/27 league year, but only $10 million of that deal was guaranteed. The Kings explored a possible trade with DeRozan and his representatives, but no workable deal came together, so the team moved on by waiving him before the contract fully locked in.
Because of the current CBA, Sacramento did not have to make the stretch decision immediately after the waiver. The Kings had until the end of August to choose whether to use that provision, and now the move has clear cap consequences.
As Yossi Gozlan pointed out, the Kings will now fall under the luxury tax line.
Sacramento has 13 players on guaranteed contracts, and this new flexibility gives the team enough room to fill its final two roster spots with veteran minimum deals without crossing the tax threshold. The Kings have also recently brought in several free agent guards for workouts.
DeRozan stayed on the market until last week, when he agreed to a one-year deal with the Nuggets. The 37-year-old finished his run with Sacramento averaging 18.4 points and 4.1 assists.
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